The Supreme Court stated last week that concealment of facts from an arbitrator is an act of fraud and new facts which have a bearing on the award should be allowed to be brought before him. The court stated so while allowing the appeal of US-based Venture Global Engineering against the ruling of the Andhra Pradesh high court in its dispute with Satyam Computer Services.
The high court had ruled that Satyam founder Ramalinga Raju’s admission of fraud could not be used three years after the international award in a dispute between the parties. According to the Supreme Court, “if concealed facts, disclosed after passing of the award have a causative link with the facts inducing the award, such facts are relevant in a setting-aside proceeding and the award may be set aside as affected or induced by fraud.”
